Dear YouDig?
We are a well-established and successful multi-national manufacturer. We sought to hire a certain specialty construction firm to be general contractor for several of our plant expansions. Well, we started exchanging contract language and out of nowhere, they demanded that we give “reasonable evidence of our financial arrangements” up front. They also want to look over our shoulder while the project is progressing. This really puts our management team off as the last thing we need is our contractor having tailor made excuses to slow down the work to find “reasonable evidence.” Are we being worked over?
-No Financial Leverage
Dear NFL,
It may be insulting to you as a multi-national, but is it really that bad that your future partner expects to be paid and doesn’t want any shenanigans?
NFL, you should be reluctant to show your financial cards. If you want the best to work for you, you might be best served to give them some love and some information so they come in fully knowing the risks. In advance, limit it to the financing package you have arranged for the project. As time goes on, offer them an option to get adequate assurances if you mess up and start to show some financial problems (lack of payment comes to mind). Cover all scenarios with an upfront confidentiality blanket so you don’t share your info with the world. YouDig?